All amounts are stated in United States dollars unless otherwise indicated 

• Revenue of $15.1 million

• Total Contract Value ("TCV")(1) bookings of $21.5 million

• Gross margin of 70%

• Adjusted EBITDA(1) of $3.0 million or 20% of revenue

• Adjusted EPS(1) loss of $(0.25)

• $20.3 million of cash on balance sheet

TORONTO, March 8, 2023 /CNW/ – Optiva Inc. ("Optiva" or "the Company") (TSX: OPT), a leader in providing communications service providers (CSPs) worldwide with cloud-native revenue management software on the private and public cloud, today released its fourth quarter financial results for the three-month and full-year period ended December 31, 2022.

 "Our legacy revenue stabilization has been a priority over the last two years, and that will continue into 2023," said John Giere, President and Chief Executive Officer of Optiva. "As we move forward, fundamental to our success is acquiring new logos, leveraging our sales and R&D investments where we bring the ability to migrate customer operational and business models to the private or public cloud using Optiva’s technology, bench strength and expertise."

Business Highlights

• TCV of Q4 ’22 bookings totaled $21.5 million. For the year ended December 31, 2022, TCV bookings totaled $91.6 million.

• The Company and Salesforce announced a new partnership to unify and integrate BSS and data-rich applications, empowering telecom operators using MuleSoft to simplify and unify their BSS and customer data and accelerate 5G ecosystem monetization. The new integration will allow operators to unlock the power of their data, streamline processes across all systems and deliver truly connected customer experiences faster.

• The Company launched the new Optiva Partner Monetization platform. It empowers telecom operators to monetize the B2B2X market and build partner ecosystems. Operators can leverage a simplified, unified and open platform that evolves with their roadmap and the market. The end-to-end partner management platform will allow operators to play any role in the B2B2X value chain; partner across industries, use cases and business types; and enjoy a fully digitized experience with a self-service partner portal.

Fourth Quarter 2022 Financial Results Highlights:

• Revenue for Q4’22 was $15.1 million. On a year-over-year basis, the change by revenue type included a $2.8 million decrease in support and subscription revenue, a $1.8 million increase in software and services revenue and $0.1 million decrease in third-party software and hardware revenue.

• Gross margin for Q4’22 amounted to 70% compared to 75% during the same period in 2021. The decline in gross margin is attributable primarily due to the impact of more customizations with lower margins ordered by customers that required fulfillment compared to the previous period and lower percentage of revenue from support and subscription revenue that has a higher margin. Gross margins may fluctuate as the Company proves out its cloud-native model and product capabilities to new and existing customers when they onboard the public or private cloud in future periods.

• General and administrative expenses decreased to $3.4 million compared to $4.8 million during the same period in 2021. The decrease is mainly due to lower compensation costs, lower legal costs and lower stock-based compensation.  

• Adjusted Earnings before interest, taxes, depreciation and amortization ("EBITDA")(1) for Q4’22 decreased to $3.0 million as compared to $3.6 million during the same period in 2021, primarily driven by lower gross margin.

• Net loss for Q4’22 was $1.5 million compared to net loss of $3.3 million during the same period in 2021. Excluding the impact from change in value of warrants the Company had a net loss of $1.5 million for the three months ended December 31, 2022, versus a net loss of $2.5 million during the corresponding period in 2021. 

• The Company ended the fourth quarter with a cash balance of $20.3 million (including restricted cash). The Company had positive cash flow from operations during the quarter.

(1) EBITDA, Adjusted EBITDA, TCV and adjusted EPS are non-IFRS measures. These measures are defined in the "Non-IFRS Financial Measures" section of this news release.

 Conference Call

Optiva Inc. will hold an analyst call on Thursday, March 9, 2023, to discuss its fourth quarter 2022 financial results for the three-month and full-year period ended December 31, 2022. John Giere, President & CEO, and Dinesh Sharma, V.P. Finance, will host the call starting at 8:30 a.m. Eastern Standard Time. A question and answer session will follow management’s discussion.

Date: Thursday, March 9, 2023Time: 8:30 a.m. Eastern Standard Time Toll-free (Canada/US):  1-888-886-7786International:  1-416-764-8658Conference ID: 83938660Online Access: https://viavid.webcasts.com/starthere.jsp?ei=1597472&tp_key=2078f0fc71

Please dial into the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.

Non-IFRS Measures

"EBITDA" and "Adjusted EBITDA" are not financial measures calculated and presented in accordance with International Financial Reporting Standards (IFRS) and should not be considered in isolation or as a substitute to net income (loss), operating income or any other financial measures of performance calculated and presented in accordance with IFRS, or as an alternative to cash flow from operating activities as a measure of liquidity. The Company defines EBITDA as net income (loss) excluding amounts for depreciation and amortization, other income, finance costs, finance income, income tax expense (recovery), foreign exchange gain (loss) and share-based compensation. The Company defines "Adjusted EBITDA" as EBITDA (as defined above), excluding restructuring costs, one-time provision amounts, and any one-time transaction costs associated with shareholder conflict. The Company believes that Adjusted EBITDA is a metric that investors may find useful in understanding the Company’s financial position. The following table provides a reconciliation of Net Income to EBITDA and Adjusted EBITDA (in thousands of U.S. dollars).

Adjusted EPS is reported diluted EPS excluding the impact of change in the fair value of warrants, one-time costs (recovery) related to shareholder conflict and release of provisions.

TCV is the Total Contract Value of all bookings closed in the period.

About Optiva

Optiva Inc. is a leading provider of mission-critical, cloud-native revenue management software for the telecommunications industry. Its products are delivered globally on the private and public cloud. The Company’s solutions help service providers maximize digital, 5G, IoT and emerging market opportunities to achieve business success. Established in 1999, Optiva Inc. is listed on the Toronto Stock Exchange (TSX: OPT). For more information, visit www.optiva.com.

Caution Concerning Forward-Looking Statement

Certain statements in this document may constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this document, such statements use such words as "may," "will," "expect," "continue," "believe," "plan," "intend," "would," "could," "should," "anticipate" and other similar terminology. These statements are forward-looking as they are based on our current expectations, as at March 8, 2023, about our business and the markets we operate in and on various estimates and assumptions. Our actual results could materially differ from our expectations if known or unknown risks affect our business or if our estimates or assumptions turn out to be inaccurate. As a result, there is no assurance that any forward-looking statements will materialize. Risks that could cause our results to differ materially from our current expectations are discussed in the Company’s most recent Annual Information Form, available on SEDAR at www.sedar.com and Optiva’s website at www.optiva.com/investors/. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Optiva does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.